Trading Statement

Severn Trent PLC
29 September 2003


SEVERN TRENT

PRE-CLOSE PERIOD TRADING STATEMENT

29 September 2003


Severn Trent is starting its usual analysts meetings ahead of the close period
prior to the announcement of results for the half-year ending 30 September 2003.
In these meetings the following trading update for the first half of the 2003/04
financial year will be provided.

Overall, the Board is pleased with the Group's first half-year performance.

In the first half-year Severn Trent Water has benefited from the IDOK and has
continued its efforts to manage costs. There has been a good start to the 2003/
04 capital expenditure programme. Severn Trent Water has delivered high levels
of performance in terms of customer service and drinking water and wastewater
quality. As part of the AMP4 price review, the draft business plans were
submitted to OFWAT in August 2003.

Biffa's turnover (excluding the impact of Hales but including Biffa Belgium) for
the half-year is expected to be ahead of the first half of last year. Biffa's
PBITA (excluding the impact of Hales but including Biffa Belgium), excluding the
estimated impact of the pension scheme valuations that are currently being
undertaken, is expected to be around 4% to 8% ahead of the first half of last
year.

Biffa is pleased with the acquisition of Hales. The integration process to date
is ahead of plan and is expected to deliver the anticipated synergies.

Services' total PBITA for the half-year is expected to be more than 20% ahead
half-year-on-half-year. This result reflects the management actions taken and
the progress from the first half of last year, together with the contribution
from the acquisition of P&K Microbiology Services.

The Group's results for the 6 months ending 30 September 2003 will be announced
on 9 December 2003.

Footnotes:

1    PBITA is profit before interest, tax, goodwill amortisation and
     exceptional items.

2    There will be a presentation for analysts and investors on
     Laboratories, led by Rachel Brydon Jannetta (President and CEO of
     Severn Trent Laboratories), at 4.00pm on Thursday 2 October 2003.
     This presentation, together with the presentation slides, will be
     available as a simultaneous webcast on the Severn Trent website
     (www.severntrent.com) and will remain on the website thereafter.

3    This document contains certain 'forward-looking statements' with
     respect to Severn Trent's financial condition, results of
     operations and business and certain of Severn Trent's plans and
     objectives with respect to these items.

     Forward-looking statements are sometimes, but not always,
     identified by their use of a date in the future or such words as
     'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects',
     'believes', 'intends', 'plans', 'targets', 'goal' or 'estimates'.
     By their very nature forward-looking statements are inherently
     unpredictable, speculative and involve risk and uncertainty because
     they relate to events and depend on circumstances that will occur
     in the future.

     There are a number of factors that could cause actual results and
     developments to differ materially from those expressed or implied
     by these forward-looking statements. These factors include, but are
     not limited to, changes in the markets in which the Group operates;
     changes in the regulatory frameworks in which the Group operates;
     the impact of legal or other proceedings against or which affect
     the Group; and changes in interest and exchange rates.

     All written or verbal forward-looking statements, made in this
     document or made subsequently, which are attributable to Severn
     Trent or any other member of the Group or persons acting on their
     behalf are expressly qualified in their entirety by the factors
     referred to above. Severn Trent does not intend to update these
     forward-looking statements.

     This document is not an offer to sell, exchange or transfer any
     securities of Severn Trent Plc or any of its subsidiaries and is
     not soliciting an offer to purchase, exchange or transfer such
     securities in any jurisdiction. Securities may not be offered, sold
     or transferred in the United States absent registration or an
     applicable exemption from the registration requirements of the US
     Securities Act of 1933 (as amended).



Enquiries:

Alan Perelman                     Severn Trent        0121 722 4176 *
Group Finance Director

Peter Gavan                       Severn Trent        0121 722 4310 *
Director of Corporate Affairs

Julian Wais                       Severn Trent        0121 722 4176 *
Head of Investor Relations

Simon Holberton and               Brunswick Group     020 7404 5959
Tim Grey


* Enquiries 7.00am-9.30am on Monday 29 September 2003:
          Alan Perelman/Julian Wais  : 020 7233 3914
          Peter Gavan                : 020 7233 3917

Ends


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